Advanced packaging not deterring cigarette falsification
According to KPMG, recipe almost 6.7bn cigarettes sold in Poland last year came from illegal sources – either from smuggling or falsified products made in underground factories. Around 55.6bn cigarettes were sold from legal sources. This means that almost one cigarette in eight is not sold legally.
The cost of this is a loss of around EUR720m to the country in lost excise and VAT taxation.
Poland has however one of the highest rates of illegal cigarette use in the EU. For the whole area, areound 10.4 percent of cigarettes come from illegal sources, although this percentage is increasing.
Packaging manufacturers have made advances in advanced packaging to deter false products, nonetheless it would seem that a large amount of clients do not want to know. Probably most users of illegal products are aware that their tobacco is not legally sold or choose not to ask questions about where it comes from.
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